IslamicFinance.de

At the 4th Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2013) in Singapore, Bahrain based international standard-setting body the International Islamic Financial Market (IIFM) announced the launch of IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement. This global standard document is supplemented with an Operational Guidance Memorandum. It is developed to be used in the Islamic inter-bank market between financial institutions in order to manage their liquidity requirements. It is also aimed to minimise the over reliance on the use of the Commodity Murabaha in the inter-bank market transactions. The key main features of this Agreement is that the Investor, the Muwakkil, will appoint the Wakil as its Agent to invest its funds in a Shari’ah compliant manner in exchange for a fee.

There has been a noteworthy growth in trade between African countries and the rest of the world. Trade with the Gulf region especially has increased 170%. African countries are in the process of changing from dependent on external aid to closely tied with the Middle East in terms of trade and investment. This makes Islamic finance a key factor in facilitating further development of trade and investment flows between Africa and the Middle East. Moreover, this is particularly important for providing funding for key areas such as SMEs and project finance.

Read more on: http://www.tripolipost.com/articledetail.asp?c=2&i=9396